Prudence Ho extended her series of scoops on China’s second-largest train maker. After leading earlier in May with the range of China CNR’s fundraising plans, she broke the news a week later that the company had told investors that it had reduced its expectations to a maximum of $1.2 billion from $1.5 billion. The next morning, she was also first with news that the company had raised $1.2 billion.

State-owned China CNR Corp., one of China’s two main train makers, told investors that it is reducing the maximum amount it is seeking from its Hong Kong initial public offering by about a fifth to US$1.2 billion.

Bankers for the train maker on Thursday issued new investor guidance. The new price guidance is now HK$5.17 to HK$5.20, down from an earlier range of HK$5.0 to HK$6.20, people familiar with the situation said Thursday.

Nearly a 10th of the deal has been sold to cornerstone investors.

The company will fix the final price early on Friday morning Hong Kong time after the institutional book closes Thursday afternoon U.S. time.

HONG KONG–State-owned bullet-train maker China CNR Corp. has raised US$1.2 billion in an initial public offering in Hong Kong, after pricing its deal near the low end of an indicative range.

The deal is the first sizable IPO to be priced in the city after pork company WH Group Ltd. last month scrapped its planned flotation, which had been poised to raise as much as US$5.3 billion, because of weak investor appetite and shareholders’ reluctance to cut the offering price. The WH deal would have been Hong Kong’s biggest in three years.

CNR, which is set to list on the Hong Kong Stock Exchange on May 22, sold 1.8 billion new shares at HK$5.17 each, said a person familiar with the situation said Friday. The price range was HK$5-HK$6.20.

UBS AG, China International Capital Corp. and Macquarie Group are the lead banks handling the transaction.

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